M/s First Indian Corporation Private Limited v. The DCIT, Circle–11(3), Bangalore
[Citation -2016-LL-1007-39]

Citation 2016-LL-1007-39
Appellant Name M/s First Indian Corporation Private Limited
Respondent Name The DCIT, Circle–11(3), Bangalore
Court ITAT-Bangalore
Relevant Act Income-tax
Date of Order 07/10/2016
Assessment Year 2006-07
Judgment View Judgment
Keyword Tags domestic turnover • foreign currency • export turnover • total turnover
Bot Summary: The learned AR of the assessee submitted that as per letter dated 26.06.2015 submitted before the tribunal on 01.07.2015, this is requested by the assessee that the assessee company wishes to withdraw all the grounds relating to TP matters i.e. Ground No. 2 to 5 in view of MAP resolution accepted by the assessee. Regarding remaining grounds which are in relation to Corporate Tax Matter, he submitted that this issue is covered in favour of the assessee by the judgment of 2 ITA No. 1138 2010 Hon ble Karnataka High Court rendered in the case of Tata Elxsi Ltd. as reported in 349 ITR 98. We have considered the rival submissions and Grounds Nos. Regarding Grounds 6 to 12, we decide the corporate tax issue i.e. computation of deduction u/s 10A in favour of the assessee by respectfully following the judgment of Hon ble Karnataka High Court rendered in the case of Tata Elxsi Ltd. and direct the A.O. that the total turnover should also be reduced by Rs. 42,55,295/- being the amount reduced by the A.O. from export turnover because this amount was incurred in foreign currency on account of soft link charges because this was held that total turnover is sum total of export turnover and domestic turnover and therefore, if an amount is reduced from export turnover, the total turnover also gets reduced by the same amount. Ground No. 1 is general and ground 13 is consequential. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on the date mentioned on the caption page.


IN INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT VIJAY PAL RAO, JUDICIAL MEMBER ITA No.1138 (Bang) 2010 (Assessment year : 2006 07) M/s First Indian Corporation Private Limited, Now known as Cognizant Global Services Private Limited, 5th Floor, Block A, Lakeview, Bagmane Technology Park, C. V. Raman Nagar, Bangalore - 560093 PAN: AAACD7206L Appellant Vs DCIT, Circle 11 (3), Bangalore Respondent Assessee by : Shri Manoj M. Shenoy, C. A. Revenue by : Miss Neera Malhotra, CIT Date of hearing : 06-10-2016 Date of pronouncement : 07-10-2016 ORDER PER SHRI A.K.GARODIA, AM This appeal is filed by assessee and this is directed against assessment order passed by A.O. on 27.07.2010 u/s 143 (3) r.w.s. 144C of I. T. Act for A. Y. 2006 - 07. 2. learned AR of assessee submitted that as per letter dated 26.06.2015 submitted before tribunal on 01.07.2015, this is requested by assessee that assessee company wishes to withdraw all grounds relating to TP matters i.e. Ground No. 2 to 5 in view of MAP resolution accepted by assessee. Regarding remaining grounds which are in relation to Corporate Tax Matter, he submitted that this issue is covered in favour of assessee by judgment of 2 ITA No. 1138 (B) 2010 Hon ble Karnataka High Court rendered in case of Tata Elxsi Ltd. as reported in 349 ITR 98. 3. In reply, learned DR of revenue supported orders of lower authorities. 4. We have considered rival submissions and Grounds Nos. 2 to 5 are rejected as not pressed. Regarding Grounds 6 to 12, we decide corporate tax issue i.e. computation of deduction u/s 10A in favour of assessee by respectfully following judgment of Hon ble Karnataka High Court rendered in case of Tata Elxsi Ltd. (Supra) and direct A.O. that total turnover should also be reduced by Rs. 42,55,295/- being amount reduced by A.O. from export turnover because this amount was incurred in foreign currency on account of soft link charges because this was held that total turnover is sum total of export turnover and domestic turnover and therefore, if amount is reduced from export turnover, total turnover also gets reduced by same amount. These grounds are allowed. Ground No. 1 is general and ground 13 is consequential. 5. In result, appeal of assessee is partly allowed. Order pronounced in open court on date mentioned on caption page. Sd/- Sd/- (VIJAY PAL RAO) (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER Place: Bangalore: Dated :07.10.2016 DS 3 ITA No. 1138 (B) 2010 Copy to : 1 Appellant 2 Respondent 3 CIT(A)-II Bangalore 4 CIT 5 DR, ITAT, Bangalore. 6 Guard file By order AR, ITAT, Bangalore M/s First Indian Corporation Private Limited v. DCIT, Circle–11(3), Bangalore
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